Question

Stephen borrows $10,000 from his uncle at a simple interest rate of 2%. He repays the loan in full after 3 years. How much money did Stephen pay his uncle back in total?
Answer:______

Answer 1

Simple Interest can be calculated by the formula I = $\frac{P T R }{100}$

Where P= principal ,R= rate of interest and T = Time.

In the given question P=$10,000,R= 2% ,T= 3 years.

Substituting the values in the formula ,

$I =\frac{10,000 x 2 x 3 }{100} =\frac{60000}{100} = 600$

Total amount Stephen pays = 10,000+600= $10,600

Answer 2

2% of 10000 = $200
3 years = $600
therefore stephen pays back 10000+600 = $10600